BUILDING BUSINESS CREDIT

Written by Credit Repair Queen

November 15th, 2015

BUILDING BUSINESS CREDIT

With most business credit cards you need to have good CONSUMER credit to get approved. But what if your personal credit isn’t good and you don’t have a guarantor? This is when BUILDING BUSINESS CREDIT makes a ton of sense. Even if you have good personal credit, building your business credit helps you get even more money…
and without a personal guarantee. Business credit is credit in a business name, that’s linked to the business’s EIN number not the owner’s SSN. When done properly, business credit can be obtained with no personal credit check and no personal guarantee… something all other cards mentioned can’t deliver.

HOW TO START BUILDING BUSINESS CREDIT

Most consumer credit starts with secured credit cards or an account that has a wellestablished co-signer but co-signed accounts and secured accounts really aren’t popular or widely used in the business world. Most business credit starts with VENDOR accounts instead.
VENDOR accounts are accounts that typically offer terms such as Net 30, instead of revolving so if you get approved for $1,000 in vendor credit and use all $1,000 of it, you’d need to pay that money back in a set term such as within 30 days on a Net 30 account. A Net 30 account would need to be paid in full within 30 days. In contrast, a Net 60 account would need to be paid in full within 60 days. Unlike
with revolving accounts, you have a set time you must pay back what you borrowed or the credit you used. So to start your business credit profile the RIGHT way, you need to get approved for vendor accounts that report to the business credit reporting agencies. Once you’ve done this, you can then use the credit, pay back what you used, and the
account gets reported to Dun & Bradstreet, Experian, or Equifax. Once reported, then you have tradelines, an established credit profile, and an established credit score. Using your newly established business credit profile and score, you can then get approved for store credit, and eventually store credit without needing to supply your SSN or personal guarantee. This is possible because now your EIN credit profile is established, and can stand on its own. So if you leave your SSN off of the application, the credit issuer then pulls your EIN credit, sees a solid profile and score, and can then approve you for real revolving credit.
Contact us today to get business credit for your business.